You can use a personal loan to pay what you owe the IRS, but it is a good idea?
If you are paying taxes you owe money to the IRS, you can not pay, you may be wondering what your options yes. One possible solution is to take out a personal loan and use the proceeds to pay the IRS.
Took a personal loan to repay the tax debt can, in some cases, a smart move, but it is not always the best option. You need to carefully consider all the options, you decide what is best for you.
When does it make sense take out a personal loan to pay taxes?
A situation, it may make sense to take a personal loan to pay taxes when entering the loan will exceed the IRS payment plan cheaper.
IRS offer several different plans for those who can not pay taxes on time. This includes those who can pay them 120 days or less due to the short-term plan. There is also a long-term plan that allows you to enter the installment agreement and pay the more than 120 days.
If you enter any payment plan, you will owe accrued late penalties. You can also owe interest on your unpaid balance. Speed, equivalent to the federal short-term rate plus 3% quarterly changes. If you choose a long-term plan, you can also, if you enroll online or $ 107 fee, if you plan to set people owed $ 31 installation fee.
If you do not qualify for a personal loan origination fees and interest rates below what the IRS charges, use PErsonal loan can save you money, you can make a lot of sense.
However, you should keep in mind that some lenders minimum amount for personal loans. If you only owe a few hundred dollars to the IRS, you may not be able to find someone willing to lend you a small amount of the lender. Before
Took a personal loan, you should explore other options.
A personal loan is not the only alternative to the IRS payment plan. Whether if you can not pay taxes, to see if there might be other options cost you less.
Might be a flight pay taxes by credit card. If you qualify for a card with a 0% APR introduction, which may beYour most affordable way to borrow. If the 0% promotional rate for a year, you have a long time to pay the tax debt ØFF not pay interest on it. You know, balance though, you will have to pay at least 1.87% of the fee, because in order to pay taxes with your credit card.
If you are not able to expire in 0% promotional price or, if you can not qualify for a discount card, there is no interest in the purchase, personal loans may cost you pay off your balance before the tax is much less than pay your taxes with a credit card interest rates.
Intelligently how to deal with tax debt, you can not pay
Whether you choose a personal loan, IRS payment plan, or credit card, the key is to find the most affordable way to handle your not to pay the tax balance.
Whatever you do, do not ignore the problem, not the file or do not pay taxes, because that eliminate the need for collection action ð cause you trouble or even potential legal.